The federal opposition is seeking to block the Labor government’s newly introduced changes to the code of conduct for tax agents, arguing the regulations place an excessive and unnecessary burden on small practitioners.
The coalition criticised the new requirements, part of the Tax Agent Services (Code of Professional Conduct) Determination 2024, which was tabled in the Senate yesterday, stating they were rushed through parliament with minimal consultation and could significantly raise costs for Australian families and small businesses.
“A strong economy with thriving small businesses, informed consumers, higher home ownership and better retirement outcomes requires strong advice networks. Yet Labor is layering red tape upon red tape on finance professionals that just drive up costs for consumers,” opposition treasury spokesman Angus Taylor stated.
“This isn’t the right approach in a cost-of-living and cost-of-doing-business crisis. Local accountants and bookkeepers have been blindsided by this new red tape, yet Labor has refused to listen to community feedback.
“Australian families and small businesses are paying the price of Labor’s failure to manage the economy and failure to listen.”
To that end, the opposition urged the Senate to support its efforts to block the changes, calling on crossbench senators to back a disallowance motion and reverse the regulatory burden and uncertainties it claims will fall on accountants, bookkeepers and other financial professionals.
Chartered Accountants Australia and New Zealand (CAANZ) welcomed the move, suggesting the new requirements are likely to have adverse consequences and are difficult to incorporate in practice.
“The obligation to disclose private information, such as investigations and health conditions which may affect an agent’s ability to provide services, has not been examined according to the statement of human rights that accompanied the determination,” CAANZ chief executive Ainslie van Onselen said.
“CAANZ is deeply concerned these new obligations will disincentivise our members from seeking mental health help if they need it – fearful a diagnosis could trigger disclosure rules and hurt their business.
“Furthermore, there has been no consultation about the insertion of a new legal obligation requiring tax professionals to ‘dob in’ clients where there has been a refusal to correct a materially false, misleading or incorrect statement.
“CAANZ has grave concerns about the impact that this new legal obligation will have on the integrity of the tax system. Businesses, particularly smaller ones, rely on their tax agent to help guide them through the complexity of business laws. This relationship is one of trust.
“This provision, as it stands, discourages clients from having frank and open discussions with tax practitioners and could worsen tax compliance.”
